Filinvest profit down 5% to P6.2 B

MANILA, Philippines - Profits of Filinvest Development Corp. (FDC) last year dipped slightly even as revenues managed to grow double digit on robust performance from operating units.

According to FDC, consolidated net income declined five percent to P6.2 billion in 2014 from P6.5 billion the previous year.

Net income attributable to equity holders of the parent company was reported at P3.7 billion, lower than the previous year as a result of additional costs related to the firm’s expansion plans.

“FDC is at the tail end of a major investment cycle. Our banking subsidiary has just completed its 400 branch expansion thrust, while our power subsidiary will commence operations of its 405 megawatt power plant by 2016. On the property front, Filinvest Land Inc.’s (FLI) gross leasable area will grow by 50 percent by end of 2015 from investments made in the retail and BPO office sector,” said FDC president and CEO Josephine Gotianun-Yap.

Despite the lower bottom line, FDC grew its revenues last year by 11 percent to P38.6 billion from P34.9 billion in 2013.

FDC said real estate units FLI and Filinvest Alabang Inc., together with banking subsidiary EastWest Bank drove the company’s top line growth.

Real estate accounted for 48 percent of FDC’s total revenues last year while 42 percent came from banking. Sugar and retail operations contributed six percent and three percent of total revenues, respectively.

“We are excited about our prospects in 2015 and onwards. Now that we have recently concluded the final phase of the EastWest Bank branch-store expansion, we are looking forward to reaping the benefits of the wider network in the coming years. We have also rolled out our new core banking IT platform. These investments are all part of our continuous customer service improvement program,” FDC chairman Jonathan T. Gotianun said.

EastWest Bank generated P2.1 billion in net income last year, a one percent increase year-on-year.

The bank ended 2014 with 405 branches, up from 347 at the end of 2013.

FLI, meanwhile, recorded a 16 percent increase in net income last year to P4.6 billion from P4 billion the previous year.

“This year, the power subsidiary FDC Utilities Inc. will start contributing revenues from  the sale of power from our 140 MW IPPA contracts with Unified Leyte and Apo Geothermal. Construction of FDC’s 3x135 MW circulating fluidized bed power plant in Misamis Oriental is in full swing and test runs will commence this year. We expect to bear the initial fruits of our investment in 2016,” Gotianun-Yap said.